Allen v. Perrino

181 A. 407, 55 R.I. 353, 101 A.L.R. 620, 1935 R.I. LEXIS 35
CourtSupreme Court of Rhode Island
DecidedNovember 20, 1935
StatusPublished
Cited by1 cases

This text of 181 A. 407 (Allen v. Perrino) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. Perrino, 181 A. 407, 55 R.I. 353, 101 A.L.R. 620, 1935 R.I. LEXIS 35 (R.I. 1935).

Opinion

Condon, J.

This is an action in assumpsit brought by John J. Allen against Michael A. Perrino and George P. Perrino based on a written agreement in the following form:

“The Village of Natick,
Town of West Warwick,
County of Providence,
State of Rhode Island.
June 21, 1928.
“In transferring this chattel mortgage to John J. Allen of the county and city of Providence on record in the city of Cranston in book 17, page 544, I hereby agree to assume payment of whatever unpaid balance of reservation of title on fixtures on*V • Michael A. Perrino
George P. Perrino.”

*354 This agreement was entered into by the defendants in connection with the sale to the plaintiff of a certain mortgage of personalty. This mortgage was given by the Forest Hills Pharmacy, Inc., of Cranston, to the defendant, Michael A. Perrino, to secure a loan of $1,500 made to this mortgagor by said mortgagee. The mortgage covered a stock of goods and fixtures located at 604 Reservoir avenue in the city of Cranston, excepting only a Frigidaire which was declared to be on lease from the What Cheer Creamery Co. of Pawtucket.

On June 22, 1928, after some previous negotiations, this mortgage was sold to the plaintiff for $1,000. At the time the money passed, or immediately thereafter, the plaintiff brought up the question of whether there were any outstanding claims against the fixtures. The defendant Michael A. Perrino testified that this was asked because of the reference made in the mortgage to the lease of the Frigidaire. He assured plaintiff that there were no claims and then offered to engage to pay for any claims of that nature, if any should be discovered. A person by the name of John M. Moore, who acted as agent for the plaintiff in negotiating the terms of the sale, and who was more or less his legal advisor in the matter, testified that he wanted to be sure that his friend Allen was protected and that he wanted Perrino to make a contract, although he did not doubt his word. The agreement set out above was then written out by George P. Perrino and handed to Moore who read it and then told Allen it was “o. k.”

It was sometime after this transaction, plaintiff testified, that he first learned of a prior chattel mortgage on this personalty in favor of the Knight Light and Soda Fountain Company of record in the proper office, and that there was still owed on this mortgage the sum of $496.22. The plaintiff paid this sum apparently to protect the mortgage which he bought from Perrino against the possible foreclosure of the prior mortgage. Plaving done this, he then demanded reimbursement from the defendants under the *355 written agreement, which he claimed covered this chattel mortgage. They refused to acknowledge any such claim, saying that the agreement referred, not to any outstanding prior mortgage, but to any claim that might arise on account of the chattels held under the Perrino mortgage being on conditional sale or, as stated in the agreement, where there was a reservation of title, which they claimed was the same thing. Thereupon Allen brought suit alleging that the said agreement covered the mortgage debt due the Knight company. The death of defendant George P. Perrino having occurred after suit was brought, the action was dropped as to him after suggestion of his death upon the record.

The case was tried before a justice of the superior court sitting with a jury and at the conclusion of the evidence the court, on motion of the defendant, directed the jury to return a verdict for the defendant on the ground that there was no question of fact for the jury because the words “reservation of title” used in the agreement referred to a conditional sale and could not be extended to mean a chattel mortgage. The plaintiff excepted to this ruling and to other rulings of the trial justice, who in the course of the trial permitted certain questions to be propounded to witnesses over plaintiff’s objections, and has brought his bill of exceptions to this court.

Plaintiff contends that the words “reservation of title” may refer either to a conditional sale or to a chattel mortgage, and that parol evidence is admissible to explain in what sense they were used in this transaction. He insists, therefore, that the trial justice erred in ruling that the words “reservation of title” as a matter of law meant only a conditional sale. In support of his contention, the plaintiff cites numerous authorities, only two of which are Rhode Island cases, Arnold v. Chandler Motors, 45 R. I. 469, and Lennon v. L. A. W. Acceptance Corp., 48 R. I. 363. These cases do not support the statement of the law as made by the plaintiff. Indeed, in Arnold v. Chandler Motors this *356 court held that a conditional sale was not a mortgage. Several times in the course of the opinion the words “reservation of title” are used to indicate a conditional sale as distinguished from a mortgage and the court frankly refers to the fact that in some jurisdictions such a sale is held to be absolute, notwithstanding such explicit reservation of title in the seller, but it does not follow those jurisdictions. A fair reading of that case, it seems to us, justifies rather the contention of the defendant that the words “reservation of title, ” when used with reference to chattels, have only one proper application in this state at least, and that is to a conditional sale, and not to a mortgage. Lennon v. L. A. W. Acceptance Corp., supra, does not modify or limit the holding in Arnold v. Chandler Motors, supra; rather it deals with the question of ownership under a statute governing the operation of motor vehicles on public highways, and, therefore, cannot be of any assistance to the plaintiff in this case.

Since the words “reservation of title” have a definite, precise legal meaning, the parties to the agreement must be presumed to have known what these words meant and to have intended to use them to express that meaning. Parol evidence is not admissible to explain that the parties in this instance used them to mean something else.

. In an early case, Knowles v. Nichols, 2 R. I. 198, it was held, quoting from Kenyon v. Nichols, 1 R. I. 411, that a deed must be construed by its own language, for it is that selected by the parties, and that the question was not what the parties intended aside from the deed but what interest was conveyed by the language used by the parties in the deed.

In Watkins v. Greene, 22 R. I. 34, this court declined to approve the introduction of oral evidence to explain that the term “appurtenances” in a lease of premises, to be used for jewelry manufacturing purposes, included with the premises the furnishing of steam and forced air in accordance with an alleged custom or usage.

*357

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Bluebook (online)
181 A. 407, 55 R.I. 353, 101 A.L.R. 620, 1935 R.I. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-perrino-ri-1935.